Purchase Entry With GST and TCS ?

Question

Accepted Answer

Purchase entry with GST and TCS involves recording purchases while considering the applicable Goods and Services Tax (GST) and Tax Collected at Source (TCS).

When recording a purchase entry with GST, the GST amount is calculated based on the applicable GST rate and added to the purchase cost.
The GST amount is then segregated into Input Tax Credit (ITC) and Integrated Goods and Services Tax (IGST) based on whether the purchase is intra-state or inter-state.
For example, if the purchase cost is $100 and the GST rate is 18%, the GST amount would be $18. If it is an intra-state purchase, $9 would be considered as ITC and $9 as IGST.
When recording a purchase entry with TCS, the TCS amount is calculated based on the applicable TCS rate and deducted from the purchase cost.
TCS is applicable on certain specified goods and is collected by the seller at the time of sale.
For example, if the purchase cost is $100 and the TCS rate is 1%, the TCS amount would be $1.
The net purchase cost after considering GST and TCS is then recorded in the accounting system.

Accepted Answer

Purchase Account  DR
Input GST Acc.        DR
TCS Acc.                  DR
             To Creditors Acc. CR

Purchase Entry With GST and TCS ?

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